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The EU Just Killed ARR

paid.ai

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Re: The EU Just Killed ARR

#31

Post by jdietrich »

arnon wrote: post #3
mehdibl wrote: post #2

What is the issue? There is 2 month's notice. If you have bad services and customer don't need it any more makes sense to allow termination, instead of contining to bill customors for nothing. This is more healthy and would push more SAAS to focus on Sales not building tricks to force retain customers!

The issue is you can't use the "I'll give you a deeper discount for a 3 year contract" line anymore. It'll potentially create a situation where customers in the US pay a lot less because they still have that incentive.

>Nothing in this Regulation prevents a customer from compensating third-party entities for support in the migration process or parties from agreeing on contracts for data processing services of a fixed duration, including proportionate early termination penalties to cover the early termination of such contracts, in accordance with Union or national law.

https://eur-lex.europa.eu/eli/reg/2023/2854/oj/eng

Re: The EU Just Killed ARR

#35

Post by [deleted] »

dh2022 wrote: post #22
phkahler wrote: post #18

Earlier quoted context omitted.

>> The issue is you can't use the "I'll give you a deeper discount for a 3 year contract" line anymore. I don't see why not. You can still offer a low price right? You can still promise it won't go up for 3 years. But the customer can now cancel at any time.

Well, if you bought hardware to support that client for 3 years and the client changes their mind 2 months later then you are stuck with this hardware....

[deleted]

Re: The EU Just Killed ARR

#36

Post by mehdibl »

arnon wrote: post #3
mehdibl wrote: post #2

What is the issue? There is 2 month's notice. If you have bad services and customer don't need it any more makes sense to allow termination, instead of contining to bill customors for nothing. This is more healthy and would push more SAAS to focus on Sales not building tricks to force retain customers!

The issue is you can't use the "I'll give you a deeper discount for a 3 year contract" line anymore. It'll potentially create a situation where customers in the US pay a lot less because they still have that incentive.

Such discounts are prepaid, or you give free period after paying in full for 70% of the period.

Also there is prepayment in a lot of commitment. When you commit on the cloud such contract your PREPAY compute unit and this is not new.

Re: The EU Just Killed ARR

#37

Post by raverbashing »

flowerbreeze wrote: post #26

As a user, this is great news. I think that the artificial lock-in to services that have near zero cost of on-boarding and off-boarding is not what nice companies should do. As an entrepreneur, this is amazing news! This means users can now more easily switch to my superior service. At least this is how I choose to see it. It seems to encourage healthy competition and I'd rather compete on the service quality and val…

Yeah the only people who would think this is bad are Adobe and companies pulling similar shenanigans

Re: The EU Just Killed ARR

#38

Post by refulgentis »

30% of the corporate blog links on HN the last 4 weeks have mysterious distance from the facts they purport to relay.

Then, they pivot to something vaguely related that is more fun to talk about.

The distance is never closed, and then you're hit by the ur-slop: "That's not X—its Y" and realize where we're at: it used to be a good idea for SEO to write informative blog entries, then it got outsourced from subject matter experts to marketing, then it got delegated to the interns, then the interns got told to use an LLM. And I love LLMs! Just makes me smile and wish for a new way to run links sites.

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